negative views of negative gearing

Plans to "curb" negative gearing will come at the "worst possible time" for WA's property market. So say the real estate sellers. And we know we can trust them for an honest statement of well researched facts.

What could possibly be wrong with negative gearing? The worse our purchase decision, the more the government will reward our stupidity. Even better, the government will reward our stupid investment decisions with money from the suckers who actually pay tax.

Brilliant!

So "now" is the worst possible time to change the rules. After all, we have just had three years of falling prices for real estate. Any changes will... well... what?

With negative gearing as it is... we have just had three terrible years for real estate investment. So what is so terrific about the current rules? What part of falling prices do we want to maintain?

We have had three years of negative gearing matched to three years of falling house prices. This seems to be three years of data to link falling house prices to negative gearing. Why protect a failing payment for investor stupidity?

Three years of negative gearing has run with three years of falling house prices. Perhaps it's time to try something better. Something that works. Or, at least, something which is not a government handout to the biggest investment losers.

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On the other hand: what is wrong with falling house prices?

Perth is now Australia's second-most most liveable city. Two years ago we were the least liveable.

Could it be our beaches? our accessible bush? perhaps even our slowing down of population growth? Near the top of the list for liveability is... falling property prices. At last, people in WA can (almost) afford to buy property.

Of course we don't really want WA to be liveable, that just attracts other people to come here. So we pour concrete as close as possible to our clean and sandy beaches. We convert bush into housing estates and lock the public out of the rest. We fill every open space with concrete block-houses.

And if that doesn't keep away non-West Aussies... we will do anything possible to raise property prices. Or at least to protect the stupidity-bonus which has paid for so much concrete profit in the past.

====    Dr Nick Lethbridge  /  Consulting Dexitroboper
Agamedes Consulting / Problems? Solved.
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"I think and think, for months, for years. Ninety-nine times the conclusion is false. The hundredth time I am right." … Einstein
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dying for you to read my blog: notdotdeaddotyet.blogspot.com.au :-)
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violence at schools

According to The West, "Almost 1000 students have been suspended from WA public schools for physical aggression in the first four weeks of the school year..." (12 Mar 19). By journalism-school maths this is "a 15 per cent increase on the same time last year."

Take the actual figure of 919 suspended (almost 1000 ?!) and last year's of 799, there has been about 10% increase. Both those figures (919 and 799) are in that same article.

Solution: Teach basic maths to journalists. And explain the difference between "almost 1000" and the just as emphatic but more honest "more than 900".

Then there is the education minister. "We have drawn a line in the sand," she says. It's a government-driven crackdown on school violence which is "working".

Working? Really ? With a 10% increase in student suspensions ? Okay, that may show a better rate of reporting of student violence, that's a good start. Increased numbers of students being suspended from school for violence ? Soooouuunds good...

If you are violent at school you may receive a ten-day holiday from school.

Students are forced -- by law -- to attend school. A suspension overrides that law. Suspension is not punishment, it is a reward. It gives the student ten days to freely commit crimes outside school grounds. To return to school refreshed and ready to fight with renewed vigour.

Solution: Provide a "borstal" day school. Students suspended from their usual school must attend borstal. Wikipedia says, "Borstals were run by HM Prison Service and were intended to reform seriously delinquent young people."

Provide a modern form of borstal for students who are excessively violent at a public school. Stricter controls, closer watch and better management of activities in the play areas. Plus the essential education which is the basic reason for provision of public schools.

At best, violent students may learn that they cannot start fights with impunity. At worst, they will attend lessons with teachers who are given the authority to keep control in the classes. The students may even learn.

Meanwhile, all of this is ignoring parental responsibilty. Where are the parents who have legal responsibility for their children ?

When a student is given a suspension holiday from school, are there parents at home to take responsibility ? Maybe. Or it may be that the parents have also lost control of their violent children. They cannot also lose responsibility.

Solution: Parents must get their suspended children to the borstal. Every day. If this is "not possible" then there will be a "borstal bus". Provided by the government and paid for -- on a pay-per-use basis -- by parents. It may not be actual "taking responsibility". At least it is "being made aware of their problem".

More student suspensions is a part of the solution to student violence at school. It's a start, it removes violent students from their potential -- at school -- victims.

We also need to provide better solutions to prevention of further violence. A holiday from school is very short-term. Longer-term, we need to provide continuing education -- to all school students. Education for students who require stricter controls and better management than can be provided at a purely educational school.

Solutions:

… Maths education for journalists.

… A political line drawn in the sand where that sand is not just a bigger playground.

… Select schools which can help violent students to adapt to -- or at least work within -- normal society.

… A reminder to -- and support for -- parents who have ultimate responsibilty for their own children.

====    Dr Nick Lethbridge  /  Consulting Dexitroboper
Agamedes Consulting / Problems? Solved.
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"If I had only one hour to save the world, I would spend fifty-five minutes defining the problem, and only five minutes finding the solution." … Einstein
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dying for you to read my blog: notdotdeaddotyet.blogspot.com.au :-)
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